When solar companies hear “HIRE Act,” their first thought is often about panel costs. And they’re right to be concerned. A 25% excise tax on imported modules would be a seismic event.

But focusing only on panels means missing the bigger, more insidious picture. The HIRE Act’s fine print threatens to increase costs across your entire operation, from the software you use to the support you rely on.

Here’s a look at the hidden costs buried in the proposed legislation.

1. The Software You Use Every Day

Think about your daily workflow:

• Design & Proposal Software: Platforms like Aurora, HelioScope, or even specialized CAD tools often rely on development teams and cloud infrastructure located outside the United States.
• CRM & Project Management: Do you use Salesforce, Zoho, or a custom solution? The bill could apply to licensing fees for software built or maintained by “foreign persons.”
• Monitoring Platforms: The software that lets you monitor system performance for your customers often runs on international servers.

The Impact: If your software provider passes on the new 25% tax, your subscription costs could jump significantly. That monthly operational expense just became a much heavier lift.

2. Offshore Support & Business Services

Many businesses, including those in solar, leverage overseas talent to stay competitive. The HIRE Act takes direct aim at this practice.

• Technical Support: Do you use a third-party provider for customer service or technical troubleshooting? If that team is based abroad, payments for their services could be taxed.
• Back-Office Functions: This is a major one. Companies that outsource accounting, data entry, marketing, or IT support to firms in other countries would see the cost of those services surge due to the combined 25% tax and loss of tax deduction.

The Impact: This could force a tough choice: absorb the higher cost of offshore support or bring these functions in-house at an even greater expense.

3. The Complex Solar Supply Chain

It doesn’t stop at finished panels. A solar panel is made of components from all over the world.

• Cells, Inverters, Racking: The bill’s language is broad enough to potentially apply to payments for key components like cells from Southeast Asia, inverters from Europe, or aluminum for racking from elsewhere.
• Raw Materials: The financial ripple could go all the way back to polysilicon, silver paste, and other raw materials sourced globally.

The Impact: Even if a panel is “assembled” in the U.S., the cost of its foreign-made parts could be subject to the tax, driving up the price of all modules, not just those fully manufactured overseas.

The Bottom Line: A Whole-of-Business Tax

The HIRE Act isn’t just a tariff on hardware; it’s a potential whole-of-business tax increase for solar companies that participate in the global economy. The real cost may be hidden in your software subscriptions, your service contracts, and your supply chain logistics.

What You Can Do Now:

1. Audit Your Expenses: Review your vendor list. Identify which services or software might be impacted.
2. Ask Questions: Reach out to your software providers and service partners. Ask them about their operational footprint and contingency plans.
3. Stay Informed: This bill is still a proposal. Follow industry groups like the SEIA for updates and advocacy opportunities.